On June 3, 2026, the European Commission released the EU Tech Sovereignty Package. The measures are designed to reduce reliance on US and other non-EU technology and digital services while supporting a domestic, low-carbon lifecycle for advanced digital technology. The package combines two legislative proposals, the Chips Act 2.0 and the Cloud and Artificial Intelligence Development Act, with two initiatives, the EU Open Source Strategy and the Strategic Roadmap for Digitalisation and Artificial Intelligence in Energy.
The original EU Chips Act of 2023 focused on expanding semiconductor manufacturing and research capacity in the EU. However, the EU still reportedly produces only 10% of global semiconductors and almost none of the world’s leading Artificial Intelligence chips. Chips Act 2.0 represents a robust supplement to the 2023 Act and aims to address overdependence on third countries for semiconductor design and manufacturing, insufficient crisis preparedness capabilities and the lack of EU-based downstream industries to absorb chip production. The proposal would support strategic projects across the advanced technology value chain, align chip production with EU cloud and Artificial Intelligence infrastructure, stimulate demand through Demand Accelerators and accelerate permitting procedures with a target of maximum one-year approvals for new chip manufacturing facilities.
The Cloud and Artificial Intelligence Development Act responds to rising demand for computing capacity driven by Artificial Intelligence and digital services. For example, Frankfurt, Paris, Amsterdam and Dublin account for 65% of the EU data center market. The legislation seeks to expand data center capacity by simplifying permitting, integrating data centers with electricity systems and creating designated data center acceleration zones. It also would introduce requirements for EU-origin content in public procurement for Artificial Intelligence and cloud services, linking demand for advanced chips to the buildout of domestic infrastructure.
The EU Open Source Strategy frames open source as strategic infrastructure rather than only a cost-saving tool. It requires public sector bodies to consider open-source solutions, share reusable software and use EU-level tools that support reuse. The Strategic Roadmap for Digitalisation and Artificial Intelligence in Energy aims to embed digital technologies, data sharing and Artificial Intelligence into electricity networks, renewable energy systems, buildings and industrial energy use. Chips Act 2.0 and the Cloud and Artificial Intelligence Development Act will now move into the ordinary legislative process, with current planning assumptions suggesting adoption in 2027.
